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India is set to introduce a digital currency backed by the nation\u2019s Reserve Bank as it continues its cautious approach to regulating cryptocurrency.<\/p>\n
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India has revealed plans to launch a digital currency backed by the Reserve Bank of India (RBI) as part of ongoing efforts to discourage the use of unregulated cryptocurrencies. According to local media<\/a> on October 7, Union Minister Piyush Goyal recently clarified the nation\u2019s position, stating that the country does not support crypto assets lacking sovereign or asset-based backing.<\/p>\n \u201cWe have not been encouraging cryptocurrency, which does not have sovereign backing or which is not backed by assets,\u201d Goyal said.<\/p>\n According to him, the RBI-backed digital currency is meant to streamline financial transactions, reduce the reliance on physical cash, and offer a more traceable and efficient alternative to traditional banking systems.<\/p>\n While the government has not imposed an outright ban on private cryptocurrencies, it has taken steps to make them less attractive through heavy taxation. The minister reiterated this stance, emphasizing that the aggressive taxing policy aims to discourage adoption due to the risks associated with the asset class.<\/p>\n \u201cWe are taxing it (cryptocurrency) very heavily,\u201d the Minister stated, adding that the government wants to prevent individuals from holding unbacked digital assets without clear accountability if issues arise.<\/p>\n <\/p>\nIndia\u2019s crypto industry faces cautious policy amid regulatory limbo<\/h2>\n